The Appreciation Of The RMB Is Unreasonable.

On the 24 day, the house of Representatives fundraising committee passed a bill to impose special tariffs on the so-called "undervalued" countries.

Analysts believe that this bill will not be conducive to the rational solution of trade imbalance between China and the United States.

RMB exchange rate is the result of historical development.

Exchange rate, also known as "foreign exchange market or exchange rate", is the price of a currency expressed in another currency.

Within a certain period, the currencies of all countries will form an exchange rate equilibrium network based on the currency value, thus pferring the decisive part of the local currency exchange rate to the market partially.

In the period of the credit monetary system, the exchange rate is the relative price between the domestic and foreign prices of all import and export commodities, that is to say, the relative price level, tariff and quota, the preference of domestic goods to foreign goods and labor productivity are the main factors affecting the exchange rate.

The relatively low exchange rate of RMB against the US dollar is the result of historical development.

China's labor productivity is lower than that of the United States. It is an indisputable fact that China's labor prices are generally low because of low labor prices. China's tariff and quota restrictions are relatively low, and the export prices of foreign goods are therefore very few, but the prices of Chinese goods abroad are mostly high. Chinese interest in foreign goods is high, but the frugal tradition is not as realistic as it imagined, though in recent years there have been changes.

Therefore, the relatively low RMB exchange rate is in line with the economic laws, and it should be low if not underestimated.

However, with the further strengthening of China's economic strength, even if there is no external pressure of appreciation, the RMB exchange rate will gradually increase.

US midterm elections again kidnap Renminbi

Recently, some US Congressmen and research institutes have constantly put forward the argument that China's exchange rate is seriously undervalued, calling for China to substantially raise the RMB exchange rate.

One reason is that the undervaluation of the RMB exchange rate has led to the Sino US trade deficit, which has deprived Americans of employment opportunities.

This argument is untenable.

The US trade deficit is caused by its trade policy. The United States still uses the Cold War mentality to implement high technology export restrictions on China so that the foreign exchange earned will be earned by other countries.

Because the United States and China are not only engaged in international trade, but the United States can make money without money.

The ten thousand step is to say that even if the two countries do not trade, the United States will suffer the same trade deficit.

The United States does not occupy the low-end market, and other countries will occupy it.

The US can only change its deficit situation by exporting more high-tech products.

Two, due to the economic structure of the United States, the goods produced can not be marketable.

If China succumb to the United States to raise the exchange rate of RMB against the US dollar, it will not only hurt the bottom people in the vast majority of the society, but also raise their living costs and even lead to internal conflicts, and many small businesses in China will also go bankrupt.

It can be said that the appreciation of the RMB is an ingratiating idea inside and outside.

Especially in the short term, the harm of a substantial appreciation is even greater.

In this way, when China solemnly announces the firm reform of the RMB exchange rate market, why does the US Congress continue to revalue the renminbi three times and again? The reason is very simple, that is, the mid-term elections in the United States.

The key to winning the election is to win the majority of voters.

On the topic of RMB, the exporters of the United States will be able to control the issue of members of Parliament.

Therefore, the appreciation of RMB has become the topic of condensing export interest groups.

And the exchange of RMB exchange rate and employment positions makes the topic more magical.

Considering that the appreciation of the renminbi is consistent with the surface plan of the US export doubling plan, the United States will make great use of the appreciation of the RMB exchange rate to create public opinion before the mid-term elections, so as to win the voters.

However, the American elite knows that the appreciation of the renminbi will hurt the American society, and it is estimated that the pressure to revalue the renminbi will be enough.